What Are Three Primary Differences Between a Credit Union and a Commercial

question 16

Essay

What are three primary differences between a credit union and a commercial bank?

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Definitions:

Lump-Sum Tax

A tax that is a fixed amount and does not vary with the taxpayer's income or consumption levels.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, meaning everyone pays the same proportion of their income.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.

Interactional Justice

Refers to the quality of the interpersonal treatment people receive when a decision is implemented.